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What do circular innovator firms look like in Emilia- Romagna? A cluster analysis of firms innovating in the circular economy

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  • Elisa Chioatto

    (University of Ferrara
    SEEDS Sustainability, Environmental Economics and Dynamic Studies)

Abstract

Innovation is widely recognized as a key driver in the transition to a circular economy. However, empirical evidence on firm-level adoption of circular innovations remains limited, particularly when considering the heterogeneity among firms, sectors, and levels of knowledge capacity across different geographical regions. This study examines the characteristics of circular innovator firms in Emilia-Romagna, aiming to identify which firms are best positioned to capitalize on circular innovations and which face structural barriers. Using cluster analysis on a dataset of 1564 small and medium enterprises, the research categorizes firms based on their level of innovativeness, distinguishing between non-innovators, traditional innovators, and circular innovators. The findings reveal that the main clusters adopting traditional and circular innovations are both characterized by R&D investments and international market orientation. However, distinct patterns emerge regarding firm size: while larger firms tend to prioritize traditional innovation, smaller and younger firms exhibit a stronger propensity for adopting circular innovations.

Suggested Citation

  • Elisa Chioatto, 2025. "What do circular innovator firms look like in Emilia- Romagna? A cluster analysis of firms innovating in the circular economy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 42(2), pages 405-440, July.
    • Handle: RePEc:spr:epolit:v:42:y:2025:i:2:d:10.1007_s40888-025-00367-0
    DOI: 10.1007/s40888-025-00367-0
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    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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